Ether traded below the $3,100 threshold on Sunday, extending a broader pullback across digital assets and highlighting shifting sentiment as ETF investors reassess risk exposure.
ETH traded near $3,066 at 9:36 p.m. UTC, a decline of 3.4% over the previous 24 hours.
The token temporarily fell below $3,100 on Bitstamp around 4 p.m. UTC, marking its first break under that level since November 4, according to TradingView data.
The downturn aligns with a wider crypto retreat as traders continue to navigate volatility and look for signals on how institutional flows may evolve through the rest of the month.
Timothy Peterson, investment manager and digital asset researcher at Cane Island Alternative Advisors, said spot ether ETFs have seen sustained withdrawals in recent weeks.
He said the products have recorded net outflows in four of the past five weeks, amounting to roughly 7% of the cost-basis capital invested.
Bitcoin ETFs, by contrast, saw about 4% withdrawn over the same period.
Peterson said the difference suggests investors currently view ether as the comparatively riskier asset.
Cost-basis capital refers to the total initial capital committed to an ETF, separate from unrealized gains or losses that result from price changes.
Analysts rely on the metric to gauge long-term conviction, since rising redemptions relative to the starting capital base indicate that established holders — not just short-term traders — are stepping back.
Because the measure focuses on original investment levels, Peterson said it can offer a clearer picture than weekly inflow-outflow totals, which are often influenced by short-term sentiment swings.
Market participants will now be watching whether these ether ETF outflows stabilize in the coming weeks.
They will also be monitoring how the token trades after losing the $3,100 support level, which has been a key psychological zone for traders since early November.
Future ETF flow data and subsequent price movement are expected to reveal whether the sentiment gap between ether and bitcoin — highlighted by Peterson — continues to widen.
With broader digital assets experiencing renewed pressure and liquidity thinning across speculative markets, analysts say the coming sessions may offer critical insight into ether’s near-term direction.
